Consumer Behaviour and Decision Making Process in Hospitality Industry

This report discusses the stages of consumer journey, factors that influence the decision-making process, and the influence of marketing mix and culture on consumer behaviour in the hospitality industry using Dakota Hotels as an example.

Unit Number and Title Unit 37 –
Consumer
Project Title Consumer
Behaviour and
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Table of Content
1.0 Introduction 3
2.0 Explanation and analysis of the stages of the consumer journey
using a visual road map/story board for a chosen B2C
product/service clearly showing and illustrating the path to
purchase
3
3.1 Identification (with a full justification) of the factors that
influence the different stages of the process and how this
compares and contrasts with B2C products/services
5
3.2 Identification (with a full justification) of the factors that
influence the different stages of the process and how this
compares and contrasts with B2B products/services
5
4.0 Evaluation of how elements of the marketing mix also influence
the decision-making process, supported by further examples and
case study illustrations 6
4.1 The influence of culture and sub-culture on consumer
behaviour and/or the role of opinion leaders 7
5.0 Conclusion 8
References 9
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1. Introduction
Consumer behaviour refer as the concept of individuals, groups or business
organisations, together with all the activities related with the buy, consume and
disposable of products and services. Basically, it involves the preferences, attitude,
nature and emotions of consumer that affects their purchasing behaviour. It is
essential for the companies to understand their consumer behaviour because it can
support them to make better marketing choices for their goods and services. When
the company understand why the consumer purchase certain goods or services or
how they utilise them, the business can adapt their offerings to better fit into the
customer’s needs and requirements in the target market (Agarwala, Mishra and
Singh, 2019). The company which is chosen to make this report is Dakota Hotels. It
is known as UK based hotel organisation with five locations, in which each of the
location involves cocktail bar and brasserie style grill. It has opened to boutique
hotels near Eurocentral, Motherwell South East of Glassgow and Edinburgh Airport
in South Queensferry. It also spread their business in Manchester, Leeds and
Central Glasgow. Ken McCulloch was the founder of Dakota Hotels. In this report,
the stages of consumer journey will be identified, factors that affect the stages of the
decision-making process of a consumer will also be included. Later, it will also
discuss the influence of marketing mix on the consumer behavior. Consumer
behavior can also be affected by culture and sub-culture so it will also discuss in this
report.
2.0 Explanation and analysis of the stages of the consumer
journey using a visual road map/story board for a chosen
B2C product/service clearly showing and illustrating the
path to purchase
A customer journey map defines as a diagram that shows the phases through
which consumer go through when interacting with the organisation from purchasing
products online to using customer service on the mobile phone to resolving
grievances on digital platforms (Aviv, Wei and Zhang, 2019). To make effective
visual maps that shows journey of consumer through such mediums, journey maps
must be rooted in data driving research, as well as must demonstrate the dissimilar
stages customers experience relied on a range of dimensions such as customer
objectives, emotions, touch points and many more. In respect of Dakota Hotels, the
stages of consumer journey are mentioned below:
 Problem recognition: It is the first stage which is based on identification of
customer needs and requirements. In case of hotel industry, consumer may
analyse their needs and wants by visualising promotional activities or
commercial advertisements done by hotel brands. Through such efforts
consumer analyse they need for booking a room in a hotel.
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 Information search: It is the next step in which information will be searched
about the choices or options through which customer can fulfill their needs
and wants. In case of hotel industry, customer exploits different methods or
channels to search data or information about the services through which they
can meet their requirements (De Mooij, 2019). It can be done through social
media platform, word of mouth publicity and much more. For example,
customer may use Instagram or Google to search for different hotels.
 Alternative evaluation: It is the next stage in which customer tends to
shortlist the choices or available options. They see each and every option with
benefits and drawbacks. In context of hotel industry, consumer assembles
data and information about hotels which can offer similar goods and services
and then compare it with other brands. When they compare options with other
available options, there are certain factors which needs to be kept in mind
such as availability of particular product or service, budget and many more.
 Purchase decision: It is a crucial step in which customer ultimately decide to
purchase a selected choice which they view as beneficial to satisfy their
needs and wants.
 Post purchase decision: This is the last stage in consumer decision-making
process in which customer get to know the effect or outcome of selected
option as whether they met requirements or not. If the expectations and
requirements are fulfilled by the hotel brand then it will support in making a
positive brand image in the market, also customer will go for the same option
in future. Somehow, if hotel brand is not able to fulfill their needs and wants,
then it builds negative influence on the service provider.
Path map to the purchasing:
 Awareness: It is the first stage in which customer recognize their wants or
expectations and see the choices that whether the company which they are
expecting to meet their requirements (Dootson and et.al., 2018). In respect of
Dakota hotel, consumer may ask for having particular service or not such as
they may ask for the mini bar services in their hotel.
 Consideration: In case of Dakota hotel, the company offer the customer with
mini bar services in certain rooms only. Then, in that case customer can seek
the information such as the price factor, kind of alcohol service the company
give to them and many other considerations.
 Interest: In this stage the customer may ask the hotel service provider why
their service is best in market and why they choose their hotel over others
(Dvir and Gafni, 2018). In such case Dakota hotels need to highlight their
benefits such as specific services and reasons so that their customers can
convince and make a choice to stay in their hotel.
 Preferences: It is the stage in which customer will examine whether they
want to go for Dakota hotel services or not. If they satisfied with the provided
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information then they may go for the services, and if not, then they may go for
another hotel brand.
 Purchase: It is the stage where consumer final makes a purchase decision
for certain goods and services and decide how far they will go for utilising
those services (Lanzini, 2017).
3.1 Identification (with a full justification) of the factors that
influence the different stages of the process and how this
compares and contrasts with B2C products/services
Decision making process in B2C context:
 Need recognition: This is a first step in which customer will identify their
preferences, choices or requirements that they want to be satisfied by the
hospitality companies (Liu and et.al., 2017). For example, hotels will promote
their brand on digital platform such as Facebook, Twitter, YouTube and many
more in order to grab their customers’ attention towards their brand.
 Information search: It is the second step in which customers use diverse
modes to gather information of diverse hotel service provider and then
compare it with other choices.
 Alternative evaluation: In this step consumer restrict the choices which are
found not suitable or costly to take services. For example, customer may
compare Dakota hotel with Stratford hotels as they also give high quality
services in the market (Mesly, 2021). If the benefits of Dakota hotels is higher
than Stratford, then their customer will eliminate the option of Stratford.
 Purchase decision: It is the stage where customer make the choices to take
hospitality services from the Dakota hotels.
 Post purchase evaluation: It is the sensitive phase where customer will
make a bad or good image of the company after using their services. So, it is
important for the chosen company to give sufficient and improved services so
that their customer care gain positive experience.
3.2 Identification (with a full justification) of the factors that
influence the different stages of the process and how this
compares and contrasts with B2B products/services
Decision making process in B2B context:
 Need recognition: In this, business make transactions with other business to
satisfy their needs. In addition to Dakota Company, they make deals with the
suppliers of mattresses for room so that it can be served to the customers.
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 Information search: In this, the chosen hotel gather assemble information
about the different mattresses company in UK itself (Mothersbaugh, and et.a.,
2020). They compare companies with various such as quality, prices, return
policies, terms and conditions and many more.
 Alternative evaluation: Dakota will limit the options of company which do not
match with the expectations. For instance, the hotel may assemble the
information about various options such as Burgess Bedding Company, The
Mattress Company and and many more. Thus, the hotel will reduce their list
by eliminating the Mattress Company as their prices are relatively high.
 Purchase decision: They may decide on the Odd Company to purchase
mattress.
 Post purchase evaluation: The chosen company appreciate the quality and
prices of Odd Company. Therefore, the company may create a positive
experience towards Odd Company. Dakota make a choice to shop mattresses
every time from that company only.
4.1 Evaluation of how elements of the marketing mix also
influence the decision-making process, supported by
further examples and case study illustrations
In respect of Dakota Hotels, the following is mentioned how marketing mix
influence the consumer's decision-making process:
 Need recognition: In the first phase, the marketers supports company to
increase their brand awareness on different channels such as magazines,
Instagram, newspapers, commercial advertisements so that their customers
can know about the specific hotel and consume the services. Mostly,
customers explore services for their entertainment purpose, spending quality
time with their family and loved ones in summer, winter or any particular
occasions. Marketers support company to promote their services among
potential customers and try to convince them to use the services of certain
hospitality organization. Thus, marketers aims to develop effective marketing
campaigns and advertisement so that their customer can see the name of
particular when they are looking for famous hotels in particular destination.
 Information search: In this phase, as the customer tend to search for the
options of hotel, the marketers use technology to promote a particular brand
and help by displaying the name of company in top of the list so that their
customer can visit websites or pages on the first go.
 Alternative evaluation: In this phase of consumer decision-making process,
the customer can compare the product or service with its price factor such as
if the customer pay high value for spa services, then they also want to get
high quality spa services so that their needs can be fulfilled (Saleem, Eagle
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and Low, 2018). It is important for Dakota, if they charge high value for their
services, then must offer services of high quality.
 Purchase decision: In this stage, the marketing team of the company should
be ensured that the goods and services should be delivered in an effective
way as it influence their experience and also influence their post decisions of
the organization.
 Post-purchase decision: The marketers of the organization communicates
with the consumers in order to know about their experience and issues if
occurred. Through various mediums, they can communicate with each other.
Dakota can use email marketing and ask their customers to give rating on the
services, employees' behavior, food, amenities and many more.
4.2 The influence of culture and sub-culture on consumer
behaviour and/or the role of opinion leaders
Consumer behaviour supports in acknowledging why and why not consumer
buys goods and services from the marketplace. Cultural factors defines as the set of
ideologies and values of a certain society or group of individuals. It is the individual
culture which shows the way he or she responds. Cultural factors have obvious
effect on an individual's purchase decision. Each person has different sets of beliefs,
habits and principles which she or he build from his family background and status.
Each culture further divided into sub-cultures such as religion, gender, age,
geographical location, status and many more. In Dakota's context, it can be
understood with an example such as, “status”, individuals from upper class mainly
have a tendency to invest their money on luxury products and services such as high
end spa services, expensive food and beverages and much more. On the other
hand, the person who identifies it difficult to make ends meet would rather like to
purchase spending on products required for survival. Hence, they cannot afford the
services from Dakota hotels as they are luxury hotels and middle class people
cannot afford it to stay.
An opinion leader can be understood as an individual who has mastered a
certain market or sector and has implanted trust within the society as a decision-
maker or an industry insider. They have huge following of customers that trust them
as an information source for their interests (Qiao and Yin, 2021). These leaders are
important as they have the ability to influence consumer trends and market. Dakota
can use social influencers or bloggers to promote their brand in the target market
and among customers. These influencers have huge fan following who have trust on
them as if they use the services from particular brand they will get the same benefit
and goodness. The opinion leaders visit different hotels and places and share their
all negative and positive experience to their audience such as they talk about quality
of services, food, drinks, prices, timinngs, ease of booking and many more. By
listening views and experiences of these bloggers or opinion leader, a company can
build a positive image in the market.
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5.0 Conclusion
It has been concluded that consumer behaviour is associated with the
shopping, exploitation and dispersion of products and services. It involves the
consumer's sentiments, tastes, preferences and so on that affects the overall buying
experience of consumer. A consumer decision-making has been done through
several stages such as need recognition, information search, alternative evaluation,
purchase decision and post-purchase decision. It is important for the organisation to
analyse the needs and wants of their customers and then make their marketing
plans and strategies to influence their decision-making process. Also, there are
various factors that can affect the consumer decision-making such as time factor,
price factor and many more. Also, it is found that nowadays, opinion leaders plays a
very important to promote brand in the potential market. As the customers have trust
on such leaders, businesses can make collaboration with them to promote their
brand and its offerings.
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References
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